Objects transforming with mouse movement
It matters where your mouse is relative to the pivot center before you start the scale. If you start far away from it, it will scale slowly, but if you start very close to it, it will scale madly.

You can change the pivot point in the 3D-Editor->Header->Pivot Point



And the 3-D Manipulator widget can also be changed from translate/rotate/scale.

You can switch the rotation mode from the regular to trackball rotation simply by hitting r a second time.